In this episode of 3 MINUTES BULLSHIT WITH GEORGE, George Natsvlishvili is joined by Andy Carvell, Partner at Phiture. Phiture is a well-known mobile growth consultancy and agency.
Andy shares his experience as the Mobile Growth Expert with Dynamic Pricing Strategy for App Monetization.
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Connect with Andy and Phiture here:
00:13 Andy’s Introduction
00:48 Dynamic Pricing Strategy for App Monetization
Transcript & Key takeaways from the episode:
Dynamic pricing is a pricing strategy in which apps set flexible subscription prices for products or services based on current market demands.
A dynamic pricing strategy is a type of price discrimination that tries to find the optimum price point at any time. Price changes can be based on the perception of how much a consumer is willing to pay at a specific time for an item, competitors’ pricing, and other variables.
You can charge different prices for different users who come in based on how you want to segment them.
Top tips: look at and discriminate by mobile phone model, possibly also by geography as well.
George: What is your experience regarding the dynamic pricing for subscription services?
Andy: Yeah, I'll get straight to it. So when we work at Phiture with a company to optimize subscription revenue we look pretty holistically. And, definitely, one of those things that we see a lot of upsides in is experimenting with pricing and particularly around dynamic pricing.
So a lot of people don't even realize that you can charge different prices for different users who come in based on how you want to segment them. One method that we definitely advise - experimenting with the handset that they're using. So if they're coming in on a top-end from iPhone, they look much more likely to tolerate and convert with a much more price on a subscription vs coming in from an Android, for example.
So that’s my top tip: look at and discriminate by mobile phone model, possibly also by geography as well.
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